The M Curve and the multinationality-performance relationship of Korean INVs

Purpose – Using data from a sample of new high technology manufacturing start-ups in Korea, the purpose of this paper is to examine the multinationality-performance relationship of international new ventures (INVs) which are born regional in terms of exporting activities. Design/methodology/approach...

Full description

Saved in:
Bibliographic Details
Published inMultinational business review Vol. 21; no. 3; pp. 214 - 231
Main Author Hyeock (Ian) Lee, In
Format Journal Article
LanguageEnglish
Published Bingley Emerald Group Publishing Limited 02.09.2013
Subjects
Economic models
Entrepreneurs
Entrepreneurship
Exports
Financial performance
Globalization
High technology
International business
Liability
Manufacturing
Multinational corporations
Multinationals
Sales
Small & medium sized enterprises-SME
Strategy
Studies
Korea
High technology Manufacturing industries
S curve
M curve
Internationalization
Performance
International new ventures
Company performance
Korea
Online AccessGet full text

Cover

More Information
Summary:Purpose – Using data from a sample of new high technology manufacturing start-ups in Korea, the purpose of this paper is to examine the multinationality-performance relationship of international new ventures (INVs) which are born regional in terms of exporting activities. Design/methodology/approach – The paper estimates econometric models as both cubic and quartic fits between the degree of multinationality and firm performance of Korean INVs using a feasible generalized least square (FGLS) regression method. Findings – It is found that the relationship between the INVs' degree of multinationality and firm performance is M-shaped, supporting the augmentation from the traditional S-curve fit applied to multinational enterprises (MNEs). In addition, in terms of performance implications, high technology manufacturing INVs perform better in their home region than in non-home regions when the degree of multinationality is mediocre or becomes very high. Finally, these findings hold for diverse performance measures. Originality/value – This paper assesses if it is really needed to go beyond the S-shaped curve with a sample of INVs, and how much the addition of the fourth degree polynomial term may increase the empirical model's explained variance between the two model specifications.
ISSN:1525-383X
2054-1686
DOI:10.1108/MBR-06-2013-0030